In addition, the development of power infrastructure, coupled with the increasing demand for battery-powered portable devices, has led to the increased adoption of power electronic devices and products across various industry verticals such as power, automotive, communication, aerospace & defence and consumer electronics.
The power electronics market is extensively consolidated, in terms of applications and materials that are used to produce power electronic devices. Five companies – TI, Infineon, Renesas, Mitsubishi and Fuji Electric – dominate the market with over 60% share.
However, the power electronics market is facing challenges such as high initial expenditures and deposition of Gallium Nitride (GaN), Gallium Arsenide (GaAs), and Silicon Carbide (SiC) on a silicon substrate which is a complex procedure, especially to reach while in high voltage ranges. These costly and time-consuming processes in manufacturing power devices are expected to restrain the market growth.
The market possesses significant potential for growth in areas such as durability against coarse environmental conditions, extended life (suitable for rugged industrial applications), and better efficiency & reliability, says the report. Several factors, such as the rapid inception of renewable energy sources and rising adoption of electric vehicles & radio communication, are influencing market growth with the adoption of power electronic devices in healthcare systems and instruments as well as the automotive industry is expected to drive the market over the forecast period.
The Asia Pacific market is expected to grow at the fastest CAGR of 2.0% from 2017 to 2025, owing to the emergence of manufacturing hubs across the continent. Countries, such as China, India, South Korea and Singapore, are expanding their domestic manufacturing activities across various industry verticals, such as consumer electronics, telecommunication, military & defence, and automotive, to strengthen their economies. In addition to this, prominent industry players are investing and establishing production & distribution units to capture the regional markets.
The global power electronics market was valued at USD 31.48 billion in 2015 and is expected to grow at a CAGR of 2.2% from 2017 to 2025, with silicon as the largest material segment in 2015, generating $28.0bn by 2025.
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